Tech companies of all sizes and ages are seeing layoffs

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Layoffs spike in large and small tech companies

The tech industry is set to see a knock as tech companies of all sizes are subject to layoffs and cost saving cutbacks.

Jack Dorsey, as recently reinstated chief executive officer of Twitter said that around eight per cent of its workforce would be cut down as part of a company restructure.

Dorsey tweeted his confirmation of this and stated that Product and Engineering would be undergoing, "the most significant structural changes to reflect our plan ahead."

Although these departments are to be the most affected by the restructure, Dorsey stated that up to 336 people across the company would be parting ways with Twitter.

In a slightly different move, young company Zomato - the $1 billion India-based restaurant discovery startup is cutting back on its services alongside reports of a 300-person staff cut.

Eight months after its launch, Zomato is shutting down its Cashless product; a seamless in-app payment system for use in restaurants.

Zomato states on their blog that although this service was extremely popular with its users, one of the main reasons for its recall is that the cost of educating restaurant staff on Cashless was too high and required "continuous maintenance".

Overall, the customer acquisition cost was high and wasn’t a financially viable part of their business model.

Plans for an improved version of Cashless are in the works, which will be less complicated for both customers and restaurants.

Microsoft has seen a long-running series of layoffs running from 2012 to present day and report around 55,000 members of staff terminations.

Similarly to Twitter’s reasons for cutbacks, Microsoft’s intentions are to restructure and rebuild an aging business with new staff.

It seems that the easiest way for tech companies to do so, is by slimming down its staff and instead spending money on its innovations.

One of the most recent bout of layoffs comes from another young company, Flipagram, which has announced that it has laid off 20 per cent of its staff due to restructuring.